Westshore Terminals Inc. | StockChase
194
Westshore Terminals Inc. (WTE-T)

Last Price Recorded: $25.7700 on 2018-01-17

ON STOCKCHASE SINCE May 2001

coal Transportation

investment companies/funds
194
Westshore Terminals Inc. (WTE-T)

Last Price Recorded: $25.7700 on 2018-01-17

ON STOCKCHASE SINCE May 2001

coal Transportation

investment companies/funds

Westshore Terminals Inc.


Signal Opinion Expert
TOP PICK

A very straightforward simple business. They own a coal loading terminal off the coast of BC, one of the largest in North America. A very stable, simple business. They basically get coal sent in from rail yards across North America, and earn a fixed fee for every ton of coal they load onto a ship. The majority of their customers are locked into long-term contracts. For the last couple of years, they’ve been spending a lot of capital upgrading equipment. When they did that, they cut the dividend significantly. The Capital Spend is going to be done in 2018, and they’ll be in a great position to ratchet up the dividend. Trading at 9X EBITDA which is cheap. Dividend yield of 2.5%. (Analysts’ price target is $26.)

investment companies/funds

A very straightforward simple business. They own a coal loading terminal off the coast of BC, one of the largest in North America. A very stable, simple business. They basically get coal sent in from rail yards across North America, and earn a fixed fee for every ton of coal they load onto a ship. The majority of their customers are locked into long-term contracts. For the last couple of years, they’ve been spending a lot of capital upgrading equipment. When they did that, they cut the dividend significantly. The Capital Spend is going to be done in 2018, and they’ll be in a great position to ratchet up the dividend. Trading at 9X EBITDA which is cheap. Dividend yield of 2.5%. (Analysts’ price target is $26.)

investment companies/funds
Veeral Khatri

Partner and Portfolio Manager, JC Clark...

PricePrice
$25.830
Owned Owned
Yes

SELL

Recently sold. It had a dip and struggling to get back up. The chart is a bit hard to interpret as it looks like it could be a choppy ride and could possibly range between about $30 -20. If you own the stock and happy with the dividend so long it doesn’t reach $20, you should be OK. Dividend 3.4%.

investment companies/funds

Recently sold. It had a dip and struggling to get back up. The chart is a bit hard to interpret as it looks like it could be a choppy ride and could possibly range between about $30 -20. If you own the stock and happy with the dividend so long it doesn’t reach $20, you should be OK. Dividend 3.4%.

investment companies/funds
Keith Richards

Portfolio Manager, ValueTrend Wealth Ma...

PricePrice
$24.950
Owned Owned
No

SELL

Hold or Sell? A great business. It has a moat as there is never going to be another terminal to hold coal in BC. They are making a lot of hay now because of the big demand for metallurgical coal. He doesn’t own this because it is a one company customer, being married to Teck Resources (TECK.B-T), which runs into trouble every few years. A brilliant asset, but you need more diversification. Would prefer something like Brookfield Infrastructure (BIP.UN-T) instead.

investment companies/funds

Hold or Sell? A great business. It has a moat as there is never going to be another terminal to hold coal in BC. They are making a lot of hay now because of the big demand for metallurgical coal. He doesn’t own this because it is a one company customer, being married to Teck Resources (TECK.B-T), which runs into trouble every few years. A brilliant asset, but you need more diversification. Would prefer something like Brookfield Infrastructure (BIP.UN-T) instead.

investment companies/funds
Barry Schwartz

CIO & Portfolio Manager, Baskin Wealth Manage...

PricePrice
$24.770
Owned Owned
Unknown

COMMENT

A really good asset. Terminals at ports are kind of scarce assets. Long-term, they are good investable assets. This one primarily serves the coal market. With the downturn in coal there was some panic and worries they would lose a lot of business. The stock really got battered, but has had a nice rebound back.

investment companies/funds

A really good asset. Terminals at ports are kind of scarce assets. Long-term, they are good investable assets. This one primarily serves the coal market. With the downturn in coal there was some panic and worries they would lose a lot of business. The stock really got battered, but has had a nice rebound back.

investment companies/funds
Alex Ruus

Portfolio Manager, Arrow Capital Manage...

PricePrice
$24.730
Owned Owned
Unknown

BUY

They have a great asset.  They have coal storage and a shipping terminal that is irreplaceable.  They take volume rather than pricing risk.  The balance sheet is clean and it pays a decent dividend. 

investment companies/funds

They have a great asset.  They have coal storage and a shipping terminal that is irreplaceable.  They take volume rather than pricing risk.  The balance sheet is clean and it pays a decent dividend. 

investment companies/funds
Colin Stewart

CEO & Portfolio manager, JC Clark Investments...

PricePrice
$24.500
Owned Owned
Unknown

TOP PICK

This has very high barriers to entry. They own a key coal loading and storage terminal on the West Coast of British Columbia. The stock sold off recently because of some concern and rumour that there is going to be a ban by the previous provincial government on thermal coal exports. When that happened, there was a lot of insider buying. Trading at 9X EBITDA. Dividend yield of 2.5%. (Analysts’ price target is $27.)

investment companies/funds

This has very high barriers to entry. They own a key coal loading and storage terminal on the West Coast of British Columbia. The stock sold off recently because of some concern and rumour that there is going to be a ban by the previous provincial government on thermal coal exports. When that happened, there was a lot of insider buying. Trading at 9X EBITDA. Dividend yield of 2.5%. (Analysts’ price target is $27.)

investment companies/funds
Colin Stewart

CEO & Portfolio manager, JC Clark Investments...

PricePrice
$24.800
Owned Owned
Yes

COMMENT

The largest coal handling facility in North America. This was recently in the news when the former BC Premier announced that she might not allow coal shipments from the US. A very quality, large infrastructure asset. If this keeps getting beaten up by the market, there might be an opportunity. Dividend yield of 2.9%.

investment companies/funds

The largest coal handling facility in North America. This was recently in the news when the former BC Premier announced that she might not allow coal shipments from the US. A very quality, large infrastructure asset. If this keeps getting beaten up by the market, there might be an opportunity. Dividend yield of 2.9%.

investment companies/funds
Michael Simpson, CFA

Senior Vice-President, Sentry Investments...

PricePrice
$21.750
Owned Owned
No

DON'T BUY

Return on Capital went from 13% in 2015 down to 8% in the 1st quarter. In the long run, it had some good returns through the years, but is clearly in a downturn right now. The valuation doesn’t look that great.

investment companies/funds

Return on Capital went from 13% in 2015 down to 8% in the 1st quarter. In the long run, it had some good returns through the years, but is clearly in a downturn right now. The valuation doesn’t look that great.

investment companies/funds
Matt Kacur

President, FSA Financial Scienc...

PricePrice
$19.090
Owned Owned
Unknown

COMMENT

Thinks of this as extremely steady. The business will improve for the next couple of years. It is basically shipping coal from Alberta/British Columbia to China. The coal business is picking up again. You don’t own this for capital gains, you own it for the highly, highly certain dividend. It will do well for the next couple of years.

investment companies/funds

Thinks of this as extremely steady. The business will improve for the next couple of years. It is basically shipping coal from Alberta/British Columbia to China. The coal business is picking up again. You don’t own this for capital gains, you own it for the highly, highly certain dividend. It will do well for the next couple of years.

investment companies/funds
Rick Rule

Pres. & CEO, Sprott USA...

PricePrice
$20.670
Owned Owned
No

PAST TOP PICK

(Top Pick Apr 6/16, Up 60%) He bought it when the world was coming to an end for met coal.  That has all changed now and the business looks a whole lot better.  It has a good return on equity with a reasonably good price momentum but he finds there is better place to fund better valuation.

investment companies/funds

(Top Pick Apr 6/16, Up 60%) He bought it when the world was coming to an end for met coal.  That has all changed now and the business looks a whole lot better.  It has a good return on equity with a reasonably good price momentum but he finds there is better place to fund better valuation.

investment companies/funds
Jason Mann

CIO & Co-Founder, Edgehill Patners...

PricePrice
$25.990
Owned Owned
No

COMMENT

Probably reasonably priced. If looking for income, you could probably move on to some of the other areas where you have very safe dividends. Dividend yield of 2.5%.

investment companies/funds

Probably reasonably priced. If looking for income, you could probably move on to some of the other areas where you have very safe dividends. Dividend yield of 2.5%.

investment companies/funds
David Cockfield

Managing Director, Northland Wealth Man...

PricePrice
$25.780
Owned Owned
No

COMMENT

This has gone lockstep with Tech Resources (TCK.B-T) this year. Demand for coal has gone up with the steel production side of things. Probably a good one to own for distribution.

investment companies/funds

This has gone lockstep with Tech Resources (TCK.B-T) this year. Demand for coal has gone up with the steel production side of things. Probably a good one to own for distribution.

investment companies/funds
Bruce Campbell (2)

President & Portfolio Manager, Stone Castle Investm...

PricePrice
$27.000
Owned Owned
No

HOLD

A great infrastructure play operating on the west coast of Canada.  Demand from Asia has dropped off but is picking up.  There are take or pay contracts on coal with a number of companies.  Hold it even though coal is being phased out because there are still countries that are using it.

investment companies/funds

A great infrastructure play operating on the west coast of Canada.  Demand from Asia has dropped off but is picking up.  There are take or pay contracts on coal with a number of companies.  Hold it even though coal is being phased out because there are still countries that are using it.

investment companies/funds
Michael Simpson, CFA

Senior Vice-President, Sentry Investments...

PricePrice
$20.350
Owned Owned
Unknown

TOP PICK

A coal terminal, but they care more about volumes than the price of coal. A top holding for him on valuation and improving price momentums. They bottomed shortly after they cut their dividend at the end of last year. Since then they have had quite a run, but he doesn’t think the run is over. ROE is still really strong at 30%. Trading at 5X EBITDA, and 8X PE. Dividend yield of 3.7%.

investment companies/funds

A coal terminal, but they care more about volumes than the price of coal. A top holding for him on valuation and improving price momentums. They bottomed shortly after they cut their dividend at the end of last year. Since then they have had quite a run, but he doesn’t think the run is over. ROE is still really strong at 30%. Trading at 5X EBITDA, and 8X PE. Dividend yield of 3.7%.

investment companies/funds
Jason Mann

CIO & Co-Founder, Edgehill Patners...

PricePrice
$16.750
Owned Owned
Yes

DON'T BUY

People had thought this was fairly well protected even though they were a hub for coal, as a lot of the contracts were “take or pay”, but unfortunately a lot of the companies with those contracts have been forced to come back to the table to renegotiate. What had been thought of as stable underpinnings has proven to be not entirely there in some cases. Trading at about 10X with a yield of close to 5%. He would be looking for a lot healthier environment for coal than what we are currently seeing.

investment companies/funds

People had thought this was fairly well protected even though they were a hub for coal, as a lot of the contracts were “take or pay”, but unfortunately a lot of the companies with those contracts have been forced to come back to the table to renegotiate. What had been thought of as stable underpinnings has proven to be not entirely there in some cases. Trading at about 10X with a yield of close to 5%. He would be looking for a lot healthier environment for coal than what we are currently seeing.

investment companies/funds
Michael Sprung

President, Sprung Investment Ma...

PricePrice
$13.100
Owned Owned
No

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1 Comment

hitch

August 14th 2017 at 5:53pm

I understand WTE has some caution to be aware of but after reading some stuff on the fundamentals what stood out was some 83M in cash and no debt. I bought into it when Cristie mouthed off took a risk and it has kind of worked out for now.


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